The U.S. economy grew far more slowly in the first three months of this year than the government previously estimated, reflecting a steeper drop in business investment in computers and other equipment and weaker consumer spending.
The Commerce Department reported Friday that gross domestic product, the country's total output of goods and services, grew at an annual rate of just 1.3 percent in the January-March quarter.
The anemic showing represented a big downward revision from the government's estimate one month ago that the economy expanded at a rate of 2 percent, a figure that astounded analysts and raised hopes for a rebound.
Federal Reserve Chairman Alan Greenspan said the worst of the slowdown that has gripped the country since the second half of last year may not be over. He signaled the Fed stands ready to do more to avert a recession.
The 1.3 percent first-quarter growth rate was a slight improvement over the meager 1 percent showing in the fourth quarter. But economists project the economy is losing altitude in the April-June quarter because of sluggish consumer and business spending.
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Blair endorses euro: British Prime Minister Tony Blair has unexpectedly adopted a warmer tone towards Europe's single currency, seizing an opportunity to turn it into a central issue in his general election campaign.
By declaring his belief that a referendum on Britain joining the euro could be won he has cut the odds on Britain joining the currency club, experts say, even though he appears to face huge public opposition.
For four years, Blair has stuck to a formula of "yes" to the euro in principle but only if the economic conditions are right and if the British people vote for it in a referendum -- all of which would wait until his second term in power.
But encouraged by an anti-European tirade by former premier Margaret Thatcher and dozens of opposition Conservative candidates breaking party policy by saying they would never join the euro, Blair appears to be coming off the fence.
Blair was asked by the Financial Times if he could persuade voters of the euro's merits. "Of course, provided you mount the argument well, provided we are setting out why it is economically and politically in Britain's interest," he said.
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Vodafone to sponsor Schumacher’s F-1 Team: Vodafone, the British mobile phone giant, will sponsor the Ferrari Formula One motor racing team of world champion Michael Schumacher in a three-year deal from the start of next year's championship.
A Vodafone (VOD) spokesman would not reveal how much the deal was worth, but the deal is another major branding coup for the telecom group, which last year secured shirt sponsorship of English soccer champions Manchester United for 30 million pounds ($42.64 million) over four years.
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Monster sets sights upon Europe: Monster.com said its parent company, advertising and marketing group TMP Worldwide (TMPW), has offered to buy Swedish online recruitment site Jobline International in a move designed to boost Monster.com's position in Europe.
TMP Worldwide is offering about $115.5 million in cash for Jobline International, whose board has recommended shareholders accept the offer.
Monster.com said the acquisition would give it a presence in Sweden, Norway, Denmark and Switzerland, boosting its number of European sites to 14 and international sites to 20.
Reuters and AP contributed to this report**
